Centerpoint Energy Restoration Bond Company, LLC
CenterPoint Energy Restoration Bond Company Senior Secured System Restoration Bonds
| Tranche | Initial Principal Balance | Interest Rate | Price to Public | Underwriting Discounts and Commissions | Proceeds to the Issuer | Scheduled Final Payment Date | Final Maturity Date |
|---|---|---|---|---|---|---|---|
| A-1 | $224,788,000 | 1.833% | 99.99734% | 0.400% | $223,882,869 | 2/15/2015 | 2/15/2016 |
| A-2 | $160,152,000 | 3.460% | 99.99066% | 0.400% | $159,496,434 | 8/15/2018 | 8/15/2019 |
| A-3 | $279,919,000 | 4.243% | 99.98411% | 0.400% | $278,754,845 | 8/15/2022 | 8/15/2023 |
CenterPoint Energy Restoration Bond Company, LLC issued $664,859,000 of Senior Secured System Restoration Bonds, or the "Bonds," in three tranches in November 2009. The Bonds are senior secured obligations of the issuer and will be supported by system restoration charges paid by retail electric customers served at distribution voltage in CenterPoint Energy Houston Electric, LLC's service territory as discussed in the prospectus supplement and accompanying prospectus described below. System restoration charges are required to be adjusted annually, and semi-annually as necessary, to ensure the expected recovery of amounts sufficient to timely provide all scheduled payments of principal, interest and other required amounts and charges in connection with the Bonds.
The Bonds represent obligations only of the issuer, CenterPoint Energy Restoration Bond Company, LLC, and are secured only by the assets of the issuer, consisting principally of the system restoration property and funds on deposit in the collection account for the Bonds and related subaccounts. The system restoration property includes the right to impose, collect and receive from retail electric customers served at distribution voltage through a system restoration charge, amounts sufficient to make payments on the Bonds. CenterPoint Energy Houston Electric, LLC and its affiliates, other than the issuer, are not liable for any payments on the Bonds. The Bonds are not a debt or obligation of the State of Texas, the Public Utility Commission of Texas or any other governmental agency or instrumentality and are not a charge on the full faith and credit or the taxing power of the State of Texas or any governmental agency or instrumentality. However, the State of Texas and other governmental entities, as retail electric customers served at distribution voltage, are obligated to pay system restoration charges securing the Bonds. Except in their capacity as retail electric customers served at distribution voltage, neither the State of Texas nor any political subdivision, agency, authority or instrumentality of the State of Texas, nor any other entity, is obligated to provide funds for the payment of the Bonds.
The Public Utility Commission of Texas has guaranteed that it will take specific actions pursuant to its irrevocable financing order, dated August 26, 2009, as expressly authorized by the Public Utility Regulatory Act to ensure that expected system restoration charge revenues are sufficient to timely pay scheduled principal and interest on the Bonds. The Public Utility Commission of Texas' obligations relating to the Bonds, including the specific actions that it has guaranteed to take, are direct, explicit, irrevocable and unconditional, and are legally enforceable against the Public Utility Commission of Texas, a United States public sector entity.
All matters relating to the structuring and pricing of the Bonds have been considered jointly by CenterPoint Energy Houston Electric, LLC and the Public Utility Commission of Texas.
Additional information is contained in the prospectus supplement relating to the Bonds dated November 18, 2009 and the accompanying prospectus dated November 13, 2009. You should read the prospectus supplement and the accompanying prospectus carefully before you decide to invest in the Bonds. A copy of the prospectus supplement and accompanying prospectus is available by clicking here.